3 Tips for Implementing a Successful Sales Incentive Program
A carefully planned sales incentive program can play a pivotal role in achieving your company’s objectives by driving sales and increasing the productivity of your sales team. The trick is to design the program so it produces employee behaviors that result in an increase of revenue for your business. Keep the following three tips in mind when implementing a rewards program for your salespeople.
Offer Short-Term Sales Incentive Awards
Because of a phenomenon known as temporal discounting, the promise of a large future award has less value in people’s minds than smaller awards promised in the near future. This means your incentive program will likely achieve the greatest results if it is structured to present awards with lower monetary value more frequently, rather than offering fewer long-term awards with a higher value.
For example, if you structure your sales incentive program to reward employees with monthly or bimonthly awards for achieving a series of smaller goals, it will have a greater impact than rewarding only one or two employees with a larger prize 12 months from now. Your incentive rewards budget stays the same, but provides a much greater impact in the minds of your salespeople.
Offer Tangible Rewards that Really Motivate
When initiating an incentive program for your organization, it’s important to choose prizes that actually motivate your sales team to accomplish the objectives and goals of the program. Offering a variety of high-quality prizes to meet the individual interests and tastes of all members of your sales team has the highest motivational value. Non-cash awards that employees desire but would probably not buy on their own are great motivators.
Maintain Employee Interest and Engagement
There are all sorts of ways to keep your sales incentive program fresh and engaging, such as:
- Offer different levels of competition and prizes
- Break the program up into smaller stages
- Encourage struggling salespeople with secondary incentives
- Send out reminders and teasers to maintain employee momentum
- Keep your sales team regularly informed of their progress
If your business objectives require a long-term incentive program, breaking up the program into a number of stages will help keep the goals of the program fresh in everyone’s mind. The end result will be the same, but allowing your salespeople to advance to the next level upon completion of smaller goals will keep the program fun and engaging for everyone involved.
An effective sales incentive program benefits both the company and your sales team. Your salespeople receive recognition and rewards for their hard work, while you receive the benefits of increased company revenue. Agenda Promotions can help you design a highly effective sales incentive program that meets the needs of your business.